EFT Errors Settlement

Electronic Fund Transfer Errors Settlement

If you suspect that an error has been made in an electronic transfer of funds, call your bank immediately. The law requires that you make the call within 60 days, but the sooner you give notice the easier it will be to correct any error. Unless the bank asks you to, you need not follow your call with a written description of the error, although it is good practice to do so, since it will provide you with evidence that you notifed the bank. Include your name and account number, the date of the error and a description of the discrepancy. The bank is required to investigate and resolve the problem within 45 days of receipt of your notification. If, however, the bank has not completed its investigation within 10 days, it must provisionally credit your account for the amount you claimed you lost through the error, plus the interest on that amount.

If the bank discovers that your claim is correct, the credit must be made permanent. If the bank disputes your charges, it must inform you of this fact and, at your request, provide you with the documents it used to reach this conclusion.

If you are unable to reach an agreement with the bank, you may take your case to: Division of Consumer and Community Affairs, Board of Governors of the Federal Reserve System, Washington, D.C. 20551.

If your specific complaint falls outside the jurisdiction of the Federal Reserve, it will direct you to a state body that can help.

Your state banking commission is another source of assistance, as is your state attorney general’s office. Should all else fail, you have the right to go to court and sue the bank for relief.

If your EFT card is lost or stolen and someone else uses it, your liability is limited to $50. But this limitation applies only if you notify the bank within two business days after discovering the loss. If you wait more than two days, your liability may be as much as $500, and if you fail to notify the bank of any unauthorized transfers that appear on your statement within 60 days of the date the statement was sent to you, you could lose everything that was taken.

Since your EFT card can be used by an unauthorized person only if he or she also knows your personal identification number, do not carry a notation of your number in your wallet or handbag, but memorize it instead.

See also Electronic Fund Transfers and Your Rights as an EFT Customer